AI applications are multiplying, and physical AI applications that interact with the real world need ways to see. Lidar and camera maker Ouster can help.

On Wednesday, Ouster announced that agricultural equipment maker Deere is incorporating Ouster's native color digital lidar sensors in Deere's GUSS Automation business.

GUSS is short for global unmanned spray systems, where Deere deploys fully autonomous spraying systems for high-value crops. The deal represents the next step in AI driving autonomous solutions.

Tractors have been driving themselves for years. Now, autonomous farming solutions can do more than till a field in a straight line.

"At GUSS, we are focused on developing autonomous solutions that help growers address the unique challenges of high-value crop production," said Jason Brantley, Vice President, Production Systems, Small Ag & Turf at John Deere, in a news release. "Integrating advanced sensing technologies into our machines helps support reliable operation in complex orchard environments and provides growers with tools designed to improve productivity and operational flexibility."

The deal is another example of advanced, AI-enabled sensing technologies moving beyond self-driving cars into areas like farming and smart infrastructure.

Ouster shipped over 9,000 lidar sensors in the second quarter, up from about 5,500 a year ago. Total second quarter sensor shipments topped 17,000 units. Ouster also sold 8,000 cameras. The company bought camera maker SteroLabs in February.

GUSS is one application, but the potential is large. Millions of tractors are on farms worldwide.

Ouster stock was up early but slid back to $35.77, down 1.3% in midday trading, while the S&P 500 was up 0.1%.

Coming into Wednesday trading, Ouster stock was up 67% year to date and 17% over the past 12 months.